Compare Home Affordability by City

Last Updated: February 2026

The Price-to-Income Ratio Explained Simply

The home price-to-income ratio tells you how many years of gross income it would take to equal the price of a typical home. If the median house costs $400,000 and the median household earns $100,000, the ratio is 4×. That's four years of earnings, before taxes, before food, before anything else. A generation ago, most American cities sat around 2.5× to 3.5×. Today, plenty of metros have climbed past 6× or 8×.

Raw sticker prices lie, and they lie in a specific way. A $250,000 listing looks like the bargain next to a $450,000 one. Then you check the paychecks behind each market. The $250,000 city earns $40,000 median, so that's 6.25×. The $450,000 city earns $130,000 median, a 3.5×. Suddenly the expensive home is the reachable one on a local salary. That's the whole reason the ratio exists: it strips the price tag down to what a typical earner there could actually carry.

The result helps you decide where homeownership is realistic given typical local earnings, or whether your income puts you ahead of or behind the median buyer in any given market. If you're considering relocation, remote work, or just wondering why your parents bought a house at 27 and you can't at 35, this number gives you the context.

City Affordability Rankings by Ratio

Not all 5× cities feel the same, but the ratio gives you a starting bracket. Here's how affordability categories generally break down:

• Under 3× (Very Affordable): Traditional lending rules work. A median-income household can buy the median home with 20% down and reasonable payments. Cities like Pittsburgh, Cleveland, and Detroit often fall here.
• 3× to 4× (Affordable): The historical norm. Median earners can buy, though saving for a down payment takes a few years of discipline. Think Indianapolis, Columbus, Kansas City.
• 4× to 5× (Stretched): You'll likely need above-median income, help from family, or a longer savings runway. Raleigh, Nashville, and Salt Lake City have drifted into this range.
• Above 5× (Unaffordable): Median-income households struggle without significant existing wealth or dual high incomes. Coastal California, Seattle, Miami, and Austin sit here.

These categories aren't moral judgments. They're descriptions of market math. A city at 7× isn't "bad," but it does mean typical buyers face a harder path than those in a 3× market.

What "3× Income" Misses in 2026

The old "buy a home worth 3× your income" rule was built for a different era. Mortgage rates hovered around 7-9% in the 1980s, but homes were cheap relative to pay. Today's rates are similar, but ratios have doubled in many markets. The rule also ignores several real-world costs:

Mortgage rates

A 3× home at 3% interest has very different monthly payments than a 3× home at 7%. The ratio stays the same, but your budget doesn't.

Property taxes

New Jersey charges 2.4% annually; Hawaii charges 0.3%. On a $400,000 home, that's a $8,400/year difference.

Insurance premiums

Florida and coastal areas have seen premiums triple since 2020. A $300,000 home might cost $5,000-8,000/year to insure.

HOA fees

Condos and planned communities can add $200-800/month. That's $2,400-9,600/year not reflected in the purchase price.

The ratio is a screening tool, not a budget calculator. Two cities with identical 4× ratios can feel completely different once you layer in taxes, insurance, and HOA. Always dig into the ongoing costs before you treat the ratio as the final answer.

Mortgage Rate Sensitivity (Fast Scenario Test)

Interest rates don't change the price-to-income ratio, but they drastically change what you can actually afford each month. Here's a quick reference for a $400,000 home with 20% down ($320,000 loan):

Monthly principal & interest by rate:

• 4% rate: $1,528/month
• 5% rate: $1,718/month (+$190)
• 6% rate: $1,919/month (+$391 vs 4%)
• 7% rate: $2,129/month (+$601 vs 4%)
• 8% rate: $2,348/month (+$820 vs 4%)

At 4%, that $400,000 home (4× on $100,000 income) costs 18.3% of gross monthly income. At 7%, the same home costs 25.5%, still under the 28% guideline, but much tighter. At 8%, you're at 28.2%, right at the edge. Same house, same ratio, very different reality.

If you're comparing cities, ask yourself: would this ratio still work at 7%? At 8%? Rates have swung by 3-4 points within single years recently. The ratio tells you about price vs. income; you still need to run the payment math at current and potential future rates.

Down Payment, HOA, and Insurance Pitfalls

The ratio assumes you can actually come up with the down payment. At 5× income, a 20% down payment equals one full year of gross earnings. Most people can't save a year's salary while also paying rent, eating, and living. Here's where people get tripped up:

Down payment reality check:

• 3× ratio: 20% down = 60% of annual income
• 4× ratio: 20% down = 80% of annual income
• 5× ratio: 20% down = 100% of annual income
• 6× ratio: 20% down = 120% of annual income

At 6×, you'd need to save more than a full year's gross pay, just for the down payment. That's before closing costs (2-5% of price) and moving expenses.

HOA fees are another blind spot. A $350,000 condo with $500/month HOA effectively costs the same as a $425,000 house with no HOA once you factor in 30 years of fees. Insurance has similar hidden weight, since flood zones, wildfire areas, and hurricane coasts can add $3,000-10,000/year that doesn't show up in the purchase price.

Before you fall in love with a city's ratio, ask: what's the typical down payment I'd need? What are HOAs like in the neighborhoods I'd consider? What does insurance cost? These answers can add 10-15% to the true affordability burden.

Buyer Checklist for the Next Step

How do I use this ratio to plan my timeline?

Calculate your personal ratio: target home price ÷ your household income. If it's under 4×, you're in traditional territory. If it's 5× or higher, plan for a longer savings runway or explore lower-priced neighborhoods within the metro. Then estimate how long it takes to save 20% down at your current savings rate. That's your realistic timeline.

Should I relocate to a lower-ratio city?

Maybe. If your job is remote or transferable, moving from a 7× market to a 4× market could cut years off your homeownership timeline. But factor in salary differences, because some lower-ratio cities also have lower incomes. Calculate whether your purchasing power actually improves or just shifts.

What if I earn above the median in my city?

Your personal ratio is what matters. If the city ratio is 6× but you earn 2× the median income, your effective ratio is 3×. Run the numbers with your actual income, not the city median. The city ratio tells you how most people experience the market; your income tells you how you'll experience it.

How do I factor in current mortgage rates?

Use a mortgage calculator to convert the ratio into monthly payments at today's rates. A 4× ratio at 7% interest puts you around 25-28% of gross income for housing, tight but manageable. A 5× ratio at 7% pushes past 30%, which most lenders consider stretched. The ratio screens cities; the payment math confirms feasibility.

What's a good next step after comparing ratios?

Shortlist 2-3 cities that fit your ratio target. Then go dig, because the ratio has done its job and can't do the rest. City medians bury huge neighborhood swings, so pull real listings. Check property tax rates, insurance quotes, and how strong the job market is in your field. Think of the ratio as the filter that narrows the map. The homework you do after is what earns the actual yes or no.

Sources & References

The figures here are illustrative estimates, modeled on the methodology of the sources below rather than pulled from them. Use the links for the official numbers:

• U.S. Census Bureau - American Community Survey: census.gov/topics/housing - Median home values and household income by metro area.
• Federal Reserve Economic Data (FRED): fred.stlouisfed.org - Historical price indices and income trends.
• National Association of Realtors: nar.realtor/research-and-statistics - Median home prices and housing affordability research.
• Zillow Research: zillow.com/research - Metro-level home value indices.